Bapcor Ltd of Australia confirmed on Tuesday that it had received a takeover proposal from private equity firm Bain Capital, valuing the automotive parts retailer's equity at AUD 1.83 billion (USD 1.21 billion).
According to this non-binding preliminary proposal, Bapcor shareholders would receive AUD 5.4 in cash per share, a 23.9% premium over the last closing price of AUD 4.36 on June 7.
As of 0013 GMT, Bapcor's stock price had risen 14.5% to AUD 4.990, making it the largest gainer on the S&P/ASX 200 Index, which was down 1.2%.
The proposal comes as the Australia-based company struggles to improve performance amid a challenging trading environment and executive departures.
Bapcor's stock price has fallen 21% this year, recently trading at its lowest point since April 2020.
In May, Bapcor cited a tough trading environment for retail performance, volume and margin pressures from competitive pricing, and rising costs.
The company also warned that profits in the second half of 2024 would be lower than in the first half. At the end of April, Bapcor announced that Paul Dumbrell would not serve as the company's CEO.
"The Bapcor Board notes that there is no certainty that Bain Capital's preliminary proposal will lead to a binding offer or any transaction," Bapcor said in a trading update.
Prior to this announcement, the Australian Financial Review earlier this week reported Bain Capital's acquisition proposal for Bapcor.
